Which of the following economic indicators is most likely to be affected by contractionary monetary policy?

Contractionary monetary policy is when a country's central bank decides to reduce the amount of money in circulation to control inflation. This usually involves increasing interest rates, which makes borrowing more expensive and encourages people to save rather than spend. One economic indicator that is most affected by this policy is consumer spending, as higher interest rates can lead to less money being used for buying goods and services. For example, if people find it harder to get loans for buying homes or cars because of increased interest rates, they might hold off on these purchases, leading to a drop in consumer spending. Overall, contractionary monetary policy aims to stabilize the economy but can slow down growth in the short term.